ENGIE SA

The stable outlook reflects our expectations that ENGIE's operating performance will progressively recover over 2021-2022 and credit metrics will improve, including our adjusted FFO to net debt remaining sustainably above 18%. We anticipate the group will continue assessing the pandemic's magnitude on its business, and that will also shape the pace of its earnings recovery. At this stage, we do not factor any major deviation from the strategy defined by the board and will reassess the strategic continuity once the CEO is in place. We could consider lowering the rating if the group cannot sustain credit metrics in line with 'BBB+' requirements, including failing to achieve FFO to debt sustainably above 18%. This could arise from a deeper-than-expected fall in

...COVID-19 halted ENGIE SA's earnings growth, with energy services and merchant power suffering the most. S&P Global Ratings project ENGIE SA's reported EBITDA (see charts 1 and 2) will decline by 6%-7% in 2020 (to 9.6 billion-9.7 billion compared with 10.4 billion reported in 2019). This is notably driven by our anticipation of an EBITDA contraction for the Client Solutions' asset-light activities of about 30% in 2020, followed by a recovery of 15%-20% growth year-over-year in 2021....

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